IDEAS home Printed from https://ideas.repec.org/a/eee/wdevel/v39y2011i9p1624-1637.html

Wet Markets, Supermarkets and the "Big Middle" for Food Retailing in Developing Countries: Evidence from Thailand

Author

Listed:
  • Gorton, Matthew
  • Sauer, Johannes
  • Supatpongkul, Pajaree

Abstract

Summary Drawing on the Big Middle theory of retail evolution, an analysis of secondary and primary survey data on Thai shopping behavior seeks to understand the shift away from wet markets to supermarkets. On all salient attributes affecting retail outlet choice, supermarkets outperform wet markets. While wet markets continue to account for the majority of expenditure on fresh produce their market share has eroded sharply. A bootstrapped bivariate ordered probit model identifies the characteristics of supermarket and wet market shoppers. The analysis questions previous work which perceived wet markets in East Asia as possessing a long-term competitive advantage in food retailing.

Suggested Citation

  • Gorton, Matthew & Sauer, Johannes & Supatpongkul, Pajaree, 2011. "Wet Markets, Supermarkets and the "Big Middle" for Food Retailing in Developing Countries: Evidence from Thailand," World Development, Elsevier, vol. 39(9), pages 1624-1637, September.
    • Handle: RePEc:eee:wdevel:v:39:y:2011:i:9:p:1624-1637
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0305750X11000246
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Thomas Reardon & C. Peter Timmer & Christopher B. Barrett & Julio Berdegué, 2003. "The Rise of Supermarkets in Africa, Asia, and Latin America," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(5), pages 1140-1146.
    2. repec:bla:devpol:v:22:y:2004:i::p:525-556 is not listed on IDEAS
    3. Bart Minten, 2008. "The Food Retail Revolution in Poor Countries: Is It Coming or Is It Over?," Economic Development and Cultural Change, University of Chicago Press, vol. 56(4), pages 767-789, July.
    4. Montchai Pinitjitsamut, 2009. "The inequality of opportunity to participate in Thailand higher education," International Journal of Education Economics and Development, Inderscience Enterprises Ltd, vol. 1(1), pages 66-94.
    5. Figui, Muriel & Moustier, Paule, 2009. "Market appeal in an emerging economy: Supermarkets and poor consumers in Vietnam," Food Policy, Elsevier, vol. 34(2), pages 210-217, April.
    6. Mergenthaler, Marcus & Weinberger, Katinka & Qaim, Matin, 2009. "The food system transformation in developing countries: A disaggregate demand analysis for fruits and vegetables in Vietnam," Food Policy, Elsevier, vol. 34(5), pages 426-436, October.
    7. Huang, Jikun & Zhi, Huayong & Huang, Zhurong & Jia, Xiangping & Rozelle, Scott, 2009. "Smallholder Incomes, Vegetable Marketing and Food Safety: Evidence from China," 2009 Conference, August 16-22, 2009, Beijing, China 51653, International Association of Agricultural Economists.
    8. Reardon, Thomas & Gulati, Ashok, 2008. "The supermarket revolution in developing countries: Policies for "competitiveness with inclusiveness"," Policy Briefs 47660, CGIAR, International Food Policy Research Institute (IFPRI).
    9. Reardon, Thomas & Barrett, Christopher B. & Berdegué, Julio A. & Swinnen, Johan F.M., 2009. "Agrifood Industry Transformation and Small Farmers in Developing Countries," World Development, Elsevier, vol. 37(11), pages 1717-1727, November.
    10. Wang, Zhigang & Mao, Yanna & Gale, Fred, 2008. "Chinese consumer demand for food safety attributes in milk products," Food Policy, Elsevier, vol. 33(1), pages 27-36, February.
    11. Horowitz, Joel L., 2001. "The Bootstrap," Handbook of Econometrics, in: J.J. Heckman & E.E. Leamer (ed.), Handbook of Econometrics, edition 1, volume 5, chapter 52, pages 3159-3228, Elsevier.
    12. Minten, Bart & Randrianarison, Lalaina & Swinnen, Johan F.M., 2009. "Global Retail Chains and Poor Farmers: Evidence from Madagascar," World Development, Elsevier, vol. 37(11), pages 1728-1741, November.
    13. Thomas Reardon & Spencer Henson & Julio Berdegué, 2007. "'Proactive fast-tracking' diffusion of supermarkets in developing countries: implications for market institutions and trade," Journal of Economic Geography, Oxford University Press, vol. 7(4), pages 399-431, July.
    14. Neven, David & Odera, Michael Makokha & Reardon, Thomas & Wang, Honglin, 2009. "Kenyan Supermarkets, Emerging Middle-Class Horticultural Farmers, and Employment Impacts on the Rural Poor," World Development, Elsevier, vol. 37(11), pages 1802-1811, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Andersson, Camilla I.M. & Kiria, Christine G. & Qaim, Matin & Rao, Elizaphan J.O., 2013. "Following up on smallholder farmers and supermarkets," GlobalFood Discussion Papers 158142, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    2. H.H. Chang & C. van Marrewijk & R. Stringer & W. Umberger, 2013. "Investment, awareness, supermarkets, and profits: heterogeneous chili farmers in Indonesia," Working Papers 13-13, Utrecht School of Economics.
    3. Maertens, Miet & Swinnen, Johan, 2015. "Agricultural trade and development: A value chain perspective," WTO Staff Working Papers ERSD-2015-04, World Trade Organization (WTO), Economic Research and Statistics Division.
    4. Rao, Elizaphan J.O. & Qaim, Matin, 2011. "Supermarkets, Farm Household Income, and Poverty: Insights from Kenya," World Development, Elsevier, vol. 39(5), pages 784-796, May.
    5. Etornam Kosi Anku & Gerald Kojo Ahorbo, 2017. "Conflict between Supermarkets and Wet-Markets in Ghana: Early Warning Signals and Preventive Policy Recommendations," International Journal of Business and Social Research, MIR Center for Socio-Economic Research, vol. 7(10), pages 1-17, October.
    6. Elizaphan J. O. Rao & Bernhard Brümmer & Matin Qaim, 2012. "Farmer Participation in Supermarket Channels, Production Technology, and Efficiency: The Case of Vegetables in Kenya," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 94(4), pages 891-912.
    7. Wertheim-Heck, Sigrid C.O. & Vellema, Sietze & Spaargaren, Gert, 2015. "Food safety and urban food markets in Vietnam: The need for flexible and customized retail modernization policies," Food Policy, Elsevier, vol. 54(C), pages 95-106.
    8. Alejandro Guarín, 2013. "The Value of Domestic Supply Chains: Producers, Wholesalers, and Urban Consumers in Colombia," Development Policy Review, Overseas Development Institute, vol. 31(5), pages 511-530, September.
    9. Qaim, Matin & Andersson, Camilla I.M. & Chege, Christine G.K. & Kimenju, Simon Chege & Klasen, Stephan & Rischke, Ramona, 2014. "Nutrition Effects of the Supermarket Revolution on Urban Consumers and Smallholder Farmers in Kenya," GlobalFood Discussion Papers 180976, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    10. repec:oup:apecpp:v:40:y:2018:i:3:p:379-401. is not listed on IDEAS
    11. Mergenthaler, Marcus & Weinberger, Katinka & Qaim, Matin, 2009. "The food system transformation in developing countries: A disaggregate demand analysis for fruits and vegetables in Vietnam," Food Policy, Elsevier, vol. 34(5), pages 426-436, October.
    12. Etornam Kosi Anku & Gerald Kojo Ahorbo, 2017. "Conflict between Supermarkets and Wet-Markets in Ghana: Early Warning Signals and Preventive Policy Recommendations," International Journal of Business and Social Research, LAR Center Press, vol. 7(10), pages 1-17, October.
    13. Rao, Elizaphan J.O. & Qaim, Matin, 2011. "The supermarket revolution and impacts on agricultural labor markets: Empirical evidence from Kenya," GlobalFood Discussion Papers 107745, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    14. Nuthalapati, Chandra S.R. & Sutradhar, Rajib & Reardon, Thomas & Qaim, Matin, 2020. "Supermarket procurement and farmgate prices in India," World Development, Elsevier, vol. 134(C).
    15. Sylvaine Lemeilleur, 2014. "The role of input vouchers in modernizing the fresh fruit and vegetable market in Turkey," Agricultural Economics, International Association of Agricultural Economists, vol. 45(4), pages 477-487, July.
    16. Sitko, Nicholas J. & Chisanga, Brian, 2016. "How Is Multinational Investment in Grain and Oilseed Trading Reshaping the Smallholder Markets in Zambia?," Food Security Collaborative Working Papers 234948, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    17. Nicholas J. Sitko & Brian Chisanga & David Tschirley & Thomas S. Jayne, 2018. "An evolution in the middle: examining the rise of multinational investment in smallholder grain trading in Zambia," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 10(2), pages 473-488, April.
    18. Minten, Bart & Murshid, K.A.S. & Reardon, Thomas, 2013. "Food Quality Changes and Implications: Evidence from the Rice Value Chain of Bangladesh," World Development, Elsevier, vol. 42(C), pages 100-113.
    19. Rao, Elizaphan J.O. & Qaim, Matin, 2013. "Supermarkets and agricultural labor demand in Kenya: A gendered perspective," Food Policy, Elsevier, vol. 38(C), pages 165-176.
    20. Kulke, Elmar & Suwala, Lech, 2015. "Internationalization of grocery retailers in emerging markets – general considerations and economic impacts," EconStor Preprints 247642, ZBW - Leibniz Information Centre for Economics.
    21. Gómez, Miguel I. & Ricketts, Katie D., 2013. "Food value chain transformations in developing countries: Selected hypotheses on nutritional implications," Food Policy, Elsevier, vol. 42(C), pages 139-150.

    More about this item

    Keywords

    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:wdevel:v:39:y:2011:i:9:p:1624-1637. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/worlddev .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.